KUALA LUMPUR, April 24 (Bernama) -- Bursa Malaysia extended yesterday’s uptrend to close on a firmer footing today, staying above the 1,500 mark, supported by improving market sentiment amid easing US-China trade tensions, despite mixed performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.33 points, or 0.36 per cent, to 1,506.52 from Wednesday’s close of 1,501.19. The benchmark index opened 0.64 of a point lower at 1,500.55, and moved between 1,500.40 and 1,507.45 throughout the day. Market breadth was positive, with advancers beating decliners 462 to 426, while 457 counters were unchanged, 1,070 untraded, and 13 suspended. Turnover improved to 3.08 billion units valued at RM2.14 billion against Wednesday’s 2.99 billion units valued at RM2.08 billion.
Uncertainty over new US tariffs has prompted some Malaysian exporters to temporarily halt shipments, particularly in sectors like furniture, petroleum products, and electronics parts. The confusion stems from a lack of clarity on the exact tariff rates and administrative procedures, leaving both exporters and US importers in limbo.
Shipments Stalled
Furniture exporters say US buyers asked them to hold off until the financial impact is clearer.
Petroleum product exporters echoed the same, awaiting customer guidance.
Exporters fear goods will be stranded at US ports if tariffs aren't properly processed or paid.
“The situation is chaotic. Even US importers don’t know what to pay,” one exporter said.
Key Export Numbers:
Manufactured goods = 85% of Malaysia’s total exports (RM1.6 trillion in 2025).
US exports grew from RM98.8b (2018–2020) to RM159.9b (2021–2023).
Electrical & Electronics (E&E) products make up 60% of exports to the US, including RM56b worth of semiconductors in 2024.
E&E Sector: Holding Steady, But Worried
Semiconductors are exempt for now, so no shipment delays.
However, a survey by the MSIA shows:
65% expect a business impact in 12 months
74% believe the tariffs may deter future investments
“Many firms are reassessing Malaysia’s competitiveness,” said MSIA president Wong Siew Hai.
Glove Exporters See Opportunity
Companies like Top Glove, Supermax, and Kossan are still shipping as usual.
Malaysia faces a 24% glove tariff, far lower than:
China (104%)
Vietnam (46%)
Thailand (36%)
Indonesia (32%)
“This gives Malaysia a relative advantage,” Top Glove noted.
Regional Ripple Effects
According to FMM, some manufacturers are:
Renegotiating contracts
Exploring new markets
Upgrading efficiency
There’s also a warning: cheaper goods from tariff-hit countries may be diverted to Malaysia and ASEAN, creating new competition risks.
Tariff confusion has frozen key Malaysian exports to the US, especially in furniture and energy. While semiconductors and gloves remain resilient for now, exporters are on high alert, navigating a volatile trade environment with shifting global dynamics.
Comments
Post a Comment